Cargill to acquire full ownership of Hungary's Agrograin

bbj.hu

Thursday, July 12, 2007, 10:18

Cargill has begun the process of acquiring full ownership of Agrograin, one of the leading grain and oilseeds trading and storage companies in Hungary.

With headquarters in Budapest, 23 locations around the country and about 290 employees, Agrograin has been a joint venture partner with Cargill since 1995. The deal will be subject to regulatory and other approvals. The intended acquisition fits closely with Cargill's strategy of developing its origination capacity and increasing its competitiveness in the grain and oilseeds arena in Central and Eastern Europe. As well as trading activity, which covers the whole of the Hungarian market, Agrograin has two export facilities on the River Danube.

“Hungary plays an important role as a significant grain and oilseed exporter and the country's surplus is expected to grow in the years ahead”, says Rod Sanderson, Cargill's existing representative in the Agrograin business. “We are delighted to be able to play a bigger part in this as owners of Agrograin. Furthermore, our history of operating in this sector across Europe, North Africa and the Middle East will facilitate market access for locally produced commodities such as wheat, corn and sunflower seeds. Agrograin is a strong business with an excellent trading team, who we look forward to working with more closely."

"I would like to pay tribute to the other shareholders in the company for their work, dedication and insight in building the business. We're particularly pleased that András Vermes has agreed to stay on to manage the transition process,” continues Sanderson. Vermes comments: “Today's announcement is great news for our customers and our employees and, for Agrograin, marks a natural next step in the evolution of the business. We have worked closely with Cargill over the years as we have built the business and hold high hopes for continued success under Cargill's full ownership.” This development will also further facilitate a competitive supply of raw materials to Cargill's existing grain, oilseed and starch plants elsewhere in Europe.

Cargill is an international provider of food, agriculture and risk management products and services. With 153,000 employees in 66 countries, the company is committed to using is knowledge and experience to collaborate with customers to help them succeed. Cargill has been active in Hungary since 1995, when the company acquired a minority stake in Agrograin. In 2001 Cargill acquired the Agribrands animal feed business in Hungary, which owns modern feed plants in Karcag and Kaposvár. Cargill Animal Nutrition Hungary serves customers nationwide both directly and through a well-established dealer and farmstore network. The company's main focus segments are in the commercial dairy, pork and poultry sectors. (agrimarket.info)

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